There are a lot of rumors and myths out there about automobile insurance. Don’t believe everything you hear. The reality is that many of these are simply false and can give you the wrong impression about how your insurance works. Here are five of the most common myths you’ll hear floating around and where their misconceptions lie.
1) The Color of Your Vehicle Affects Your Rate
The insurance company doesn’t take the paint color of your car into account at all. This rumor was centered around red and other brightly colored automobile paint jobs. The idea was that more visible vehicles were prone to more traffic citations from police. Many have heard that getting these citations will increase your premiums, which leads to myth #2.
2) Getting a Speeding Ticket Will Immediately Increase Your Current Rates
Get a moving violation fine? Before you panic, know that this doesn’t immediately mean your rates will rise. Your increase in premiums is based on your risk, so being a few miles over the speed limit isn’t going to factor much as long as you have a good driving record. However, if you’re way above the speeding limit (15 MPH instead of 5) or there are further complications (such as a DUI or failure to stop), you’re going to see the real cost of moving violations.
3) Items Stolen From Your Car Are Covered
Personal property that is stolen from your car may be covered under your homeowner’s or renter’s insurance, but not under automobile insurance. In the event of a break in, automobile insurance could cover the damage to the car itself, such as a broken window, assuming comprehensive coverage is included in your policy.
4) Brand New and Very Old Cars Cost More to Insure
Your car being a newer model does not mean it is necessarily more expensive to insure. This myth came from the assumption that the higher cost of modern parts would lead to higher insurance premiums. This is offset, however, by the fact that many new models today have a number of safety measures to mitigate the potential of an accident. Examples of these features include blind spot sensors and auto braking mechanisms.
Similarly, many believe that older cars are more expensive to insure too. This was because they are perceived to require more regular maintenance than a newer car. Actually, older cars often cost less to insure than newer models. The truth is, the age alone of the vehicle is not indicative of your rate. Make and model of the car play a far greater role in determining your premium.
5) If You Use Your Car for Business, Their Insurance Will Cover Your Car
There has been a sharp increase in the number of drivers for ride-sharing services such as Uber and Lyft recently. Many people assume that if you drive for one of these services, then your car is a company vehicle and therefore covered by their insurance, but this is not always the case. The companies are required to provide liability insurance, but you should look into personal coverages that protect ridesharing drivers to ensure you’re always safeguarded. Make sure also to review what your company offers for business insurance and when it applies to you. It may be in your best interest to invest in commercial insurance on your own vehicle.
Still confused about these myths? Want to ask about others you’ve heard? Talk to the professionals at the TJ Woods Insurance Agency. We’ll break it down for you simply. Contact us with any questions you have about automobile or any other forms of insurance. We’ll clarify them for you and offer a free quote for your situation.
